Davidson Tisdale Mines has acquired 3.9 million shares of Vital Pacific Resources at a price of 37 cents per share. Of the $1.45 million raised by Vital Pacific, $1.2 million will be used by the company to acquire the Broulan property near Timmins, Ont. The claims are currently held by Davidson Tisdale.
As a result of the placement, a change of control in Vital has resulted. Such a change will require approval at the company’s annual meeting, scheduled for Dec 2.
Vital Pacific also has an agreement with Noranda Inc. which gives the company the right to earn an interest in a Noranda claim group 50 miles east of Timmins. Under an amendment to the original agreement, Vital must spend $750,000 on exploration in order to earn a 23% interest. Canacord Resources has an option to provide the exploration funds by Oct 31. If Canacord fails to provide financing, Davidson Tisdale will finance the deal.
A 49% stake in the Noranda property can be acquired by spending $1.5 million by September, 1988. If Canacord provides $1 million by September, 1987, the company will earn 49% of Vital’s interest in the project.
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